Kompany is set to boost his wages with the Premier League champions to £200,000 a week, according to the Sun.

The deal would earn centre-back Kompany nearly £60m, with bonuses adding to that figure.

City are said to be keen to reassure captain Kompany over his status as the club's key defender with the arrival of £32m defender Eliaquim Mangala from Porto imminent and likely to be among the big earners at the club.

Kompany, who signed a six-year deal in 2012, has captained City to two Premier League titles in three years but Manuel Pellegrini has increased the competition for places in his defence for the new season.

In addition to the looming arrival of Mangala, Bacary Sagna, who occasionally played in a central position for Arsenal, has signed and faces a battle with Pablo Zabaleta for the right-back role.

"I needed a change, I spent seven years at Arsenal and I had great times there but I wanted to start from the bottom again and work hard again," Sagna said after his deal at the Emirates expired.

"When you come into a team like this it's not hard to motivate yourself, I watched them celebrate last season and three years ago and I wanted to celebrate too.

"I will have to work hard just to get in this team, because we have great players challenging for every single position.

"It is vital for a team to succeed to have a really strong squad now, so the players can be rotated. We will play every three days and the body needs to recover, so we will need to have that strength. We have a very powerful squad.

"Zabaleta was one of the ones who had the most chat with me. He is one of the best. He can defend well and he's very decisive going forward.

"I am not here to fight with him, I am here to give the maximum to fight for the team. Of course, one of us will play a bit more than the other, but it shows the strength of this side, and for me it's not a problem."